Buffett Rule introduced in Congress

posted by Lana N. | 3pt
February 02, 2012

In his State of the Union Address, President Obama restated his view that the wealthiest Americans should pay their fair share in taxes to help reduce America's deficit. Now, Senator Sheldon Whitehouse (D-RI) has introduced a bill that would make the Buffett Rule, a tax named after billionaire Warren Buffett, law.

Warren Buffett made headlines last year when he called on government to tax millionaires and billionaires like himself at a fair rate, one corresponding to their extreme wealth. Whitehouse's bill would make the most affluent Americans pay up to 30% in taxes.

Read the following excerpt from Wall St. Journal about the proposed Buffett Rule:

"Democratic senators introduced a bill Wednesday based on President Barack Obama's proposed 'Buffett rule' that would require the wealthiest Americans to pay at least 30% in taxes...

The legislation introduced Wednesday by Sen. Sheldon Whitehouse (D., R.I.) would ensure that anyone earning more than $2 million in income each year, including from capital gains, would pay a minimum 30% federal tax rate, Mr. Whitehouse said on the Senate floor Wednesday morning.

Wealthy taxpayers who face a tax rate above 30% would still pay the higher rate. The 'fair share tax' would be gradually phased in for those earning between $1 million and $2 million in annual income. They would pay a portion of the extra tax needed to get them to the 30% rate, the lawmaker said."